During an Audit, Wicks Learns That the Entity Was Granted

question 59

Multiple Choice

During an audit, Wicks learns that the entity was granted a 3-month waiver of the repayment of principal on the installment loan with Blank Bank without an extension of the maturity date, which is one year in the future. With respect to this loan, the audit program used by Wicks is least likely to include a verification of the

• A) Interest expense for the year.
• B) Balloon payment.
• C) Total liability at year-end.
• D) Installment loan payments.

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Definitions:

Filing Date

The filing date refers to the specific day on which a document is officially submitted or recorded with a governmental or legal office.

Effective Date

The date on which an agreement, policy, or regulation becomes enforceable or active.

Securities Act Of 1933

A U.S. federal law enacted to ensure transparency and fairness in the issuance of securities, requiring registration and disclosure to protect investors.

Promissory Note

A written, legally binding agreement in which one party promises to pay a defined sum of money to another party under specified conditions.